Compuware rallied sharply following a takeover bid of $11 a share in cash from shareholder and activist hedge fund Elliott Management.

Yahoo hit a four-year high. The Internet company's stock is up nearly 26 percent since Marissa Mayer became its CEO.

Caribou Coffee surged 30 percent after German investment firm Joh. A. Benckiser Group said it would acquire the coffee house operator for $16 per share in cash, or about $340 million.

Harley-Davidson rallied after Wedbush said channel checks show a "slight acceleration in retail sales growth."

Apple suppliers rallied following the iPhone 5 launch in China last Friday. Qualcomm and Cirrus Logic were among the biggest gainers, the stocks recovering from last week's selloff on concerns about Apple sales in China.

And PulteGroup surged, building on its recent rally. The stock jumped nearly 10 percent in the last week.